These developments notably emerged during a period of significant exchange outflows, reflecting contrasting signals around Ethereum’s institutional activity.
$ETH exchange outflows approach fourth consecutive week
Here, it’s worth noting that Ethereum’s spot exchange flows recorded three consecutive weeks of net outflows, extending a sustained withdrawal trend. In particular, the recent weekly reading approached -$1.5 billion, hinting at significant withdrawals from trading platforms.
In case netflows remain negative through the weekly close on 19th October, Ethereum will complete its fourth consecutive week of outflows.
These sustained withdrawals have reduced exchange-side supply, potentially limiting the amount of $ETH readily available for selling.
The fall in exchange balances, however, did not establish an automatic stronger demand or guarantee a price recovery. Instead, the sustained outflows contrasted with $ETH’s weak price performance, hinting at a divergence between exchange activity and market direction.
Are Ethereum traders still betting on a price recovery?
Despite the fall in price, Ethereum derivatives traders predominantly maintained a bullish position across major trading platforms.
According to Coinglass, $ETH’s OI-Weighted Funding Rate remained positive at 0.0037%, hinting at continued demand for long exposure as longs paid shorts.
Meanwhile, Binance’s top trader accounts recorded a notable imbalance between bullish and bearish positions. Specifically, the long positions accounted for 69.78% compared to the 30.22% holding short positions. The positioning resulted in a Long/Short Ratio of 2.31 as bullish accounts outnumbered the bearish accounts.
These metrics together reflected persistent bullish positioning even when Ethereum failured to record a meaningful price recovery. However, the long positions concentration also increased exposure to potential liquidations in case $ETH extends its decline.
Ultimately, the derivatives positioning provided a more optimistic outlook than Ethereum’s underlying technical structure.
$ETH approaches $2,400 as bearish signals intensify
After correcting from the $2,800-resistance area, Ethereum [$ETH] sat at around $2,429. The pullback pushed $ETH towards the $2,400-support, although the bulls were trying to prevent a sustained breakdown.
Also, on the daily chart, the price action highlighted repeated attempts to stabilize around the prevailing demand area, keeping the technical support structure intact.
The Parabolic SAR indicator, however, remained above $ETH at $2,638.98, validating the prevailing bearish trend.
The MACD indicator fell to -41.36, below its Signal line, to produce a negative histogram. This confirmed that bearish pressure has continued to dominate the market.
The $2,400-support level will remain crucial since a breakdown below it could expose $ETH to another corrective leg. Especially if the bears continue to maintain control.
Final Summary
- Ethereum’s exchange outflows continued for a fourth potential week despite persistent price weakness.
- $ETH remained above $2,400, but bearish indicators increased the risk of a further fall.
